The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,
A) resource allocation is efficient.
B) resource allocation is inefficient.
C) too few tons of fertilizer are produced.
D) consumers must pay too high a price for fertilizer.
B
Economics
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If the price of a product increases
A) there is an increase in quantity supplied and a decrease in demand. B) there is an increase in supply and a decrease in quantity demanded. C) there is an increase in supply and a decrease in demand. D) there is an increase in quantity supplied and a decrease in quantity demanded.
Economics
In his book The Other Path, de Soto suggests that the key to economic development is
A. Limiting capitalism and profit takers. B. Transactions within the "official" economy. C. Government control of resources. D. Entrepreneurship and market forces.
Economics